Trading Plan for November 19, 2010
Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), CEL (32.89)
Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10), DTV (43.30)
BIAS: 2% Short
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
Futures are down moderately.
Asian markets were mixed and European markets are showing moderately levels of weakness as well.
Yesterday's rally was strong, but it failed on three separate occasions to retake the important psychological 1200 price level on the S&P.
The bulls did manage to close above the 20-day moving average but only by two-tenths of a point, which is hardly convincing at all.
Today's gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday.
If the early morning selling holds throughout the day, then it will be painfully obvious that yesterday was a dead-cat bounce.
We'll have POMO every day this week.
For the bulls, today should be about dip buying and pushing this market beyond 1200.
Bears should aim to fill yesterday's gap up.
Here Are The Actions I Will Be Taking: